Gillard may top up Murray-Darling Basin water supply

Prime Minister
Julia Gillard
is expected to pledge extra funds to secure more water for the future of the Murray-Darling Basin when she visits South Australia on Friday as the government finalises its controversial plan for the nation’s largest river system.

Sources said the government might commit as much as an extra $1.7 billion on top of the $9 billion already earmarked for the water reforms but delay the cost effect by pushing the extra spending out for a decade beyond 2014-15.

The fact that the $5.8 billion already set aside for water infrastructure upgrades will secure only 600 gigalitres (600 billion litres) for the environment, as reported in The Australian Financial Review on Monday, has contributed to a cost blowout in the river rescue.

Friday’s announcement is expected to provide further funds to secure water beyond the 2750 gigalitres proposed by the Murray-Darling Basin Authority as the volume that should be recovered for the environment.

Coalition water spokesman
Barnaby Joyce
said the Labor government should concentrate on securing support for the basin plan already proposed by the authority rather than pledging future funds for extra water. “This is buying an engagement ring with somebody else’s money for the girl you’ve never met," Senator Joyce said last night. “They should try to get what they’ve got on the table done first."

The SA government argues that 3200 gigalitres should be returned to the river system and Environment and Water Minister
Tony Burke
has previously said the extra water would have clear environmental benefits.

But the NSW and Victorian governments have insisted any extra environmental water should not be at the expense of their irrigation communities. To avoid further antagonising the upstream states, the federal government may focus the extra spending on improving the efficiency of farmers’ irrigation systems, rather than on buying back their entitlements.

The AFR revealed this week the National Irrigators’ Council believes the $5.8 billion for water infrastructure projects has secured only a fraction of the water it should have, suggesting much of the money has gone to administration, rather than water-saving infrastructure.

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The SA government had threatened a High Court challenge if more water is not secured for the river system.

Mr Burke has promised to present his final basin plan to Parliament before the year’s end, bringing to a head the river rescue that began in 2007 under the previous Coalition government. MPs will have the chance to vote on the plan in its entirety but not to amend it.